Smallest Colorado business continue to drop health insurance

The number of small businesses that provide health insurance to their employees is still declining, but at a slower pace than in previous years.

A report released Monday from the Colorado Division of Insurance shows that the number of people covered by health insurance in the small-group market declined by 4 percent in 2011. In 2010, that number declined by 7 percent.

The biggest drop occurred in the market for sole proprietors, which declined by 35 percent.

Key findings in the report include:

The total number of people covered by health insurance in the small-group market in 2011 declined by 10,625, or about 4 percent. The total number of small group employers offering health insurance also dropped in 2011 by 2,210, a 7 percent decrease from 2010.

The number of plans for employers with six to 50 employees increased.

The number of group plans for employers with 26 to 50 employees grew by 342, or about 53 percent; and covered 18,628 more lives in 2011, a 59 percent increase.

Small employers shifted to more multi-option plans that provide employees more choice, and decreased the use of Health Savings Account qualified plans in proportion to other plans.